TL;DR
The Indian government has launched a ₹7,280 crore scheme to boost domestic manufacturing of rare earth permanent magnets, strengthening the EV supply chain and promoting clean mobility.
The Indian automotive industry has lauded the government's newly announced scheme to promote the domestic manufacturing of rare earth permanent magnets, backed by a substantial outlay of ₹7,280 crore. This initiative is considered a pivotal step towards establishing a resilient and stable supply chain, particularly for essential components and sub-assemblies vital for electrified vehicle production.
Both the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA) have welcomed the Union Cabinet's approval, emphasizing its potential to accelerate the adoption of clean mobility solutions and contribute to India's broader sustainability goals. The scheme is expected to strengthen indigenous manufacturing capabilities, reduce dependence on imports, and enhance the nation's energy security by lowering crude oil imports.
Rare Earth Permanent Magnets are crucial for electric motors and high-efficiency systems. Establishing a domestic, integrated manufacturing base will significantly boost India's technological competitiveness, encourage investments in advanced materials, and position the country strongly within global value chains for EVs and clean energy.
